A structured, documented, and repeatable process for identifying and recommending mutual fund schemes based on suitability, risk alignment, and objective review criteria.
Our fund selection follows a documented step-by-step framework. No scheme is shortlisted or recommended without completing the relevant screening, suitability, and review steps. [web:285][web:286]
Based on the client’s investment goal, time horizon, liquidity needs, and assessed risk profile, identify the suitable mutual fund category such as liquid, short duration, hybrid, index, large cap, flexi cap, mid cap, small cap, ELSS, or other applicable categories.
Review AMC reputation, operational capability, fund governance, and publicly known regulatory or compliance concerns before taking the scheme forward for evaluation.
Compare performance across relevant periods and market conditions, with emphasis on consistency and behaviour across cycles rather than relying only on single-period point-to-point returns.
Review relevant risk indicators such as volatility, downside behaviour, drawdown pattern, and other risk-adjusted return measures to understand whether the scheme’s risk profile is consistent with the intended use case.
Compare expense levels within the relevant category because costs can materially affect long-term investor outcomes, especially in closely competing schemes.
Assess fund manager tenure, style consistency, and continuity of the investment approach, while noting significant changes in portfolio leadership where relevant.
For equity schemes, review concentration, diversification, and style characteristics. For debt schemes, review credit profile, maturity profile, and concentration-related risks.
Review the scheme’s disclosed riskometer category and align it with the client’s assessed risk appetite and investment objective before considering any recommendation.
The final shortlist is reviewed under the documented internal process before being used in investor discussions or recommendations.
The scheme list is reviewed periodically and updated when required based on suitability, material changes, performance behaviour, portfolio shifts, or other relevant developments.
Each investor is assessed for risk appetite and investment horizon, and recommendations are made only within the broadly suitable product bucket. Mutual fund schemes carry riskometer labels ranging from low to very high, which support this suitability mapping. [web:286][web:297]
| Risk Profile | Short Term (<3 Years) | Medium Term (3–7 Years) | Long Term (>7 Years) |
|---|---|---|---|
| Very Conservative | Overnight, Liquid, Money Market; typically low-volatility and capital-stability-oriented options | Ultra Short Duration, Low Duration, Floating Rate type options where suitable | Short Duration, Banking & PSU, selected debt-oriented options subject to suitability |
| Conservative | Liquid, Ultra Short Duration, Arbitrage type options where suitable | Short Duration, Conservative Hybrid type options within suitability limits | Conservative Hybrid and selective lower-volatility long-term options depending on investor needs |
| Moderate | Short-duration or hybrid-oriented options depending on liquidity and risk needs | Balanced or hybrid-oriented options, large cap or diversified exposure where suitable | Flexi cap, large and mid cap, multi asset, ELSS or diversified long-term options where suitable |
| Moderately Aggressive | Hybrid-oriented options for investors willing to accept measured volatility | Flexi cap, multi cap, focused or diversified equity exposure subject to suitability | Flexi cap, mid cap, value-oriented or tax-saving equity options for long horizons |
| Aggressive | Limited use of higher-volatility hybrid or tactical options only where suitable | Mid cap, flexi cap, thematic or higher-risk diversified equity options subject to suitability | Mid cap, small cap, sectoral or thematic strategies only for investors with high risk tolerance and long horizons |
| Very Aggressive | Only where the investor clearly understands elevated short-term volatility and loss risk | Higher-risk equity-oriented strategies, including small cap or thematic exposure where suitable | Very high risk equity-oriented categories for investors with strong risk appetite, long horizon, and capacity to bear loss |
The following situations may lead to exclusion from the recommended list or trigger enhanced review before any scheme is considered further:
Material regulatory or compliance concerns relating to the AMC or scheme that are relevant to investor suitability or confidence.
Excessive portfolio concentration or risk characteristics that do not fit the intended category use case.
Debt schemes with credit or liquidity characteristics that appear inconsistent with the intended investor suitability bucket.
Material changes in fund management, strategy, mandate, or portfolio behaviour that require reassessment.
Products that do not fit the investor’s risk profile, liquidity needs, or time horizon.
Any other factor that, in our internal review, makes the scheme unsuitable for inclusion in the curated list.
If an investor wishes to proceed with a scheme that does not align with the assessed suitability outcome, an appropriate written record or declaration may be obtained and maintained as part of the transaction and compliance documentation. [web:286][web:287]
Invest India Online states that scheme selection is intended to follow a documented suitability-oriented process and not be based solely on distributor remuneration. AMFI also publishes commission disclosure information for distributor-related transparency. [web:277][web:280]
